Many of us have given in to the temptation to buy things we don’t need. Imagine you’re passively scrolling through your social media feeds when you come across a sponsored post showcasing the latest tech gadget with a raving review. Impatient and afraid of missing out, you click the “buy” button, only to quickly find your excitement wear off and you’re left feeling regretful and with a dwindling bank account.
What is an impulse buy?
Impulse spending is the act of making random, unplanned purchases without considering long-term goals or needs. From flashy tech to trendy fashion items, impulse buys can quickly drain your bank account and prevent you from reaching your long-term financial goals.
Impulse buying is further fueled by social media: According to a Bankrate Social Media Survey, 48% of social media users have made an impulse purchase, and of those, 68% said they regretted making an impulse purchase on social media.
Combined with the current high inflation environment, giving in to impulse purchases can have an even more detrimental effect on your savings than usual, but there are ways to curb impulsive spending habits and focus on longer-term financial goals.
Strategies to stop impulse buying
1. Think before you buy
Getting into the habit of thinking slowly and carefully before making an impulse purchase can save you a lot of money.
Some questions to ask yourself:
- Is this item a want or a need?
- Can you afford it without sacrificing something more important?
- Will this bring long-term value and satisfaction?
2. Follow a shopping list
Before you go to the store or shop online, make a shopping list of the items you really need. A shopping list helps you plan your shopping, eliminates ambiguity and reduces the chance of impulse, and serves as a reminder of your goals and priorities.
You could also try using a shopping list app that allows you to organize your shopping list and share it with friends and family to streamline the shopping process.
3. Practice the 24-hour rule
When you come across an item that makes you want to buy it right away, give yourself a 24-hour cooling off period. Why? The purpose of the 24-hour rule is to allow time between your initial impulse and the actual purchase. Often times, the initial excitement and urge to buy fades after that time has passed. Waiting gives you the opportunity to reconsider the purchase in a more neutral mental state.
During these 24 hours, you can research the product’s features, read reviews, compare prices, and consider whether it fits your needs and budget.
4. Unfollow tempting accounts
A constant barrage of glamorous images, flashy ads, and influencers promoting products on social media makes it all too easy to click that “buy now” button. With a swipe or scroll, we are presented with countless products and services that promise to improve our lives in some way. But these promises can be deceptive, and giving in can lead to financial stress and instability.
One big step you can take to resist the temptation to make impulse purchases is to carefully manage your social media feeds to avoid seeing such products in the first place. Unfollow the brands and promoters that constantly tempt you. You can also remove certain shopping apps from your phone or set time limits on the apps that most tempt you. Making small changes to your social media feeds can help reduce your constant exposure to shopping triggers and save you money.
5. Prioritize clear financial goals for long-term satisfaction
Visualize your ideal financial future and set clear goals. Don’t just say you want to save money, set a specific goal, like saving $5,000 within the next year. Once you’ve set a goal, you can incorporate it into your budget to align your spending with what you want to achieve in the long term.
While the constant temptation to buy things can make it easy to give in to momentary pleasure, remembering your financial goals and learning to wait can give you long-term satisfaction. Reward yourself (within reason) for each small milestone you achieve toward your goal to keep you in a positive mindset and reinforce your commitment to your bigger goal.
6. Pay with cash
Take the time to budget exactly how much you can spend on a purchase and then withdraw cash to spend on that purchase. Using cash will help you avoid excess spending and impulse purchases.
If you’re used to paying with your card to earn credit card points or cash back rewards, paying with cash means you miss out on those rewards. But the discipline it gives you may help you get back to responsible credit card use.
Watch for signs of impulsive spending habits
The excitement of an impulse buy may not come immediately, but there are some signs to watch out for, including:
- When making a purchase, you spend more than you can afford or more than you had planned on spending.
- Hide your purchases from your family and partners.
- With so many expenses elsewhere, you can’t pay your bills or save as much as you’d like.
- I feel guilty and regretful about spending money.
Conclusion
Setting clear financial goals and prioritizing long-term needs over short-term impulse purchases can help you regain control of your finances and make decisions that support your future goals. Track the money you save by curbing impulse purchases. You can put the money you save into a specific savings fund or invest it in a high-yield certificated deposit (CD) to get money back in the form of interest.
